Drivers who are your employees

If you employ these types of workers, you have to deduct CPP/QPP contributions, EI premiums, PPIP premiums, and income tax from their pay and prepare a T4 slip for them as you would for regular employees. For more information about the payroll deductions, see Guide T4001, Employers’ Guide – Payroll Deductions and Remittances.

Tax-exempt salary or wages you paid to your Indian employee are treated differently. For more information about preparing a T4 slip, go to Indians – Tax-exempt employment income.

Drivers who are self-employed

Even if these types of workers are self-employed, special rules apply to the payroll deductions you have to withhold. For more information, see Guide T4001, Employers’ Guide – Payroll Deductions and Remittances.

You still have to prepare a T4 slip for EI and PPIP purposes as explained below. For more information on how to report the tax-exempt earnings of an Indian who is not your employee, go to Indians – Tax-exempt self-employment income.

For all other self-employed workers, fill in the following fields on their T4 slip:

Employer's name
Enter your operating or trade name.

Employee's name and address
Enter the worker's name and address, including the province or territory and postal code.

Box 10 – Province of employment
Enter the provincial or territorial abbreviation.

Box 12 – Social insurance number
Enter the SIN, as provided by the worker.

Box 14 – Employment income
Leave this box blank. See Other information.

Box 18 – Employee's EI premiums
Enter the EI premiums remitted on behalf of the worker (worker's share only).

Box 24 – EI insurable earnings
Enter the amount of the worker's insurable earnings on which you calculated the EI premium, up to a maximum of $60,300 for 2022. Enter "0" if there are no insurable earnings.

Box 28 – Exempt (CPP/QPP, EI, and PPIP)
Enter an "X" or a check mark under CPP/QPP.

Box 29 – Employment code
Enter code 12 for taxi drivers or drivers of other passenger-carrying vehicles.

Box 55 – Employee's PPIP premiums
Enter the PPIP premiums remitted on behalf of the worker (worker's share only), while they worked in Quebec.

Box 56 – PPIP insurable earnings
For workers working in Quebec, enter the total amount used to calculate the worker's PPIP premiums, up to a maximum of $88,000 for 2022.

Other information
Enter the amount of gross earnings of the worker, using code 82 for taxi drivers and drivers of other passenger-carrying vehicles.

If you do not know the actual gross earnings, you still have to report gross income and an amount of insurable earnings, which you can calculate using the method explained under "EI premiums" at Taxi drivers and drivers of other passenger-carrying vehicles.